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Monday, 29 February 2016

Budget 16-17 Highlights

In his introductory speech as he presented the Union Budget, Jaitley focused on the difficulties and challenges faced by the country amid a global crisis. He said that the 🇮🇳 economy has held firm despite the global crisis.

🔰 Govt to partner with state governments to revive some airports to increase regional connectivity. Govt drawing action plans for 160 airports and airstrips that can be developed at cost of ₹50-100 cr each.

🔰 Govt will assist startups through 100% deduction in profits for 3 out of 5 years.

🔰 Corporate tax: Phasing out of exemptions to continue.Corp tax rate for new manufacturing units at 25% + surcharge + cess, lowering of corporate income tax rate for companies with turnover less than ₹5cr to 29% + surcharge + cess

🔰 Additional rebate of ₹50000 for 1⃣st time house buyers for loans up to 35 lakhs & reduction of service tax 4 affordable housing. 100% deduction for profits from building flats up to 30 square metres in metro cities.

🔰 Withdrawal up to 40% from NPS to be tax exempted.

No Change in Personal Taxation Slab

High Income Individuals to pay enhanced surcharge of 15% in case income > 1.00 crore

Relief u/s 87A increased from 2000 to 5000

Deductions u/s 80GG increased from 24000 to 60000

Limit for 44AD increased from 1.00 Crore to 2.00 Crore
(Consequently limit u/s 44AB also increased to 2.00 for business and 50.00 lac for professionals)

Limit for 44AD (Professional) now applicable upto 50.00 lac with presumptive rate of income at 50%

Small Corporate Tax Payers to pay @ 29%

No Service tax on Services provided under DeenDyal Upadhyay Kaushal Yozna